Q-comm push hurts Eternal profit

SLOW RECOVERY

- ANEES HUSSAIN

ETERNAL REPORTED A 63% year-on-year (yo-y) decline in its consolidated profit for the second quarter of FY26, primarily driven by a surge in expenses as the company ramped up investments in its fast-growing quick-commerce business.

Profit fell to %65 crore from %176 crore in the year-ago period. However, profitability improved 30% sequentially from %172 crore in the first quarter of FY26.

The company’s revenue from operations grew 2.8 times to =13,590 crore in the second quarter compared with %4,799 crore in the same quarter last year. Management cautioned that this sharp increase primarily reflects a business model shift in quick commerce (Blinkit) to inventory ownership from pure marketplace.